Deal sells senior secured convertible notes with 25% warrant coverage
By Devika Patel
Knoxville, Tenn., Aug. 22 - ISC8 Inc. settled a private placement of senior subordinated secured convertible promissory notes on Aug. 8, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal raised $3.2 million with an original issue discount of 7.7% for a principal of $3.4 million.
The 12% notes are due Jan. 31, 2014 and will convert to common shares at $0.06 per share.
In addition, the investors received 25% warrant coverage. Each warrant is exercisable at $0.042 until Sept. 30, 2013.
The conversion price is a 20% premium to the Aug. 7 closing share price of $0.05. The strike is a 16% discount to that price.
The Costa Mesa, Calif., company designs, develops, manufactures and sells vision systems, miniaturized electronic products and level systems.
| Issuer: | ISC8 Inc.
|
| Issue: | Senior subordinated secured convertible promissory notes
|
| Amount: | $3.4 million
|
| Maturity: | Jan. 31, 2014
|
| Price: | 7.7% discount ($3.2 million)
|
| Coupon: | 12%
|
| Conversion price: | $0.06
|
| Conversion premium: | 20%
|
| Warrants: | 25% coverage
|
| Warrant expiration: | Sept. 30, 2013
|
| Warrant strike price: | $0.042
|
| Settlement date: | Aug. 8
|
| Stock symbol: | OTCBB: ISCI
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| Stock price: | $0.05 at close Aug. 7
|
| Market capitalization: | $5.86 million
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